Good news from the US: the economy grew by 1.2% annualized against 0.9% expected. Personal consumption was revised up to 0.6%.
Durable goods orders are up 0.7% but core orders disappointed with a drop of 0.4%. Excluding defense and air expenses, we see a drop of 0.1% against 0.5% expected.
The US dollar is slightly stronger but not going anywhere fast. Here is the euro/dollar chart. The pound seems to extend its falls, moving more on its own weakness than on the US data.
Earlier this week, the Fed’s meeting minutes left a bit for everyone. The members would like to raise rates but want more evidence. It is hard to see a smoking gun for a rate hike from this data.
The US was expected to report an upgrade of the Q1 2017 assessment from 0.7% to 0.9%. The figures are all annualized. So, quarter over quarter, this would still keep us in the 0.2% zone.
Durable goods orders are released at the same time and are expected to fall by 1.2% against +1.7%. Core orders carry expectations for +0.5% after +0.8%.
The US dollar was strengthening ahead of the publication. EUR/USD slipped under 1.12, GBP/USD is around 1.2840, a drop of over 100 pips.
USD/JPY stands out and falls to 111. This is a risk off move.Get the 5 most predictable currency pairs